Yes - CPCU Iowa Chapter

Ethics Quiz Questions
1. Which of the following has been found to be a true statement regarding ethics and the insurance
industry?
a.) On average, insurance practitioners are more likely to act unethically in business practices than
in purely personal situations.
b.) More than 50 percent of people in business indicate having observed one or more unethical or
illegal acts in the past twelve months.
c.) Insurance practitioners believe that management’s emphasis on the bottom line is one of the
main factors leading to unethical decision-making.
d.) All of the above are true statements.
2. A strong organizational culture is one in which there is a high expectation of conformity with the
organization’s beliefs, values, and purpose. All of the following are true statements regarding
organizational culture EXCEPT:
a.) In general, members of organizations having strong cultures are more likely to act ethically.
b.) In general, members in organizations with weak cultures are more likely to base their ethical
decisions on the norms and values of small groups within the organization.
c.) In general, members of large organizations feel less responsibility for their actions than those in
small organizations.
d.) In general, higher level employees have less ethical beliefs and their ethical decision-making is
less than lower level employees.
3. Which one of the following statements has been found to be true?
a.) In general, publicly held (stock) companies are more ethical because of the external scrutiny
they receive.
b.) In general, mutual insurance companies have made their codes of conduct more prominent and
ethical attitudes more positive than stock companies.
c.) There is no relationship to ethics and organizational ownership.
d.) Over the long run, the most successful companies have focused first and foremost on profit
maximization.
4. All of the following are true statements EXCEPT:
a.) Individuals see themselves as more ethical than their coworkers or supervisors.
b.) The ethical behavior of supervisors strongly influences the ethical behavior of their subordinates.
c.) In general, supervisors’ and management’s actions have little influence over individuals’ ethical
behavior because individuals form their ethical values outside of the work environment.
d.) Supervisors who are successful performers have greater influence over their subordinates’
ethical behavior.
5. Which one of the following is a true statement?
a.) Most employees report that a company’s ethical position is stated in their training courses.
b.) The existence of a formal code of ethics is a strong deterrent to unethical behavior.
c.) The awareness of a formal code of ethics is a strong deterrent to unethical conduct rather than
just the mere existence of one.
d.) The most successful ethical training programs are ones that emphasize how to make ethical
decisions rather than setting clear, uncompromising rules.
See page 7 for answers to this quiz.
Page 6